Riverfort Regulatory News (RGO)

22 Jun 2007 16:06

Caldwell Investments PLC22 June 2007 PRELIMINARY RESULTSYear Ended 28th February 2007 CALDWELL INVESTMENTS P.L.C. Highlights: • Turnover for the year ended 28th February 2007 £6,247,478 (2006: £6,418,670) • Pre tax loss before exceptional items £158,135 (2006: £525,668) • Reassessment of Group activities and recognition for strategic change • NinaSun garden furniture discontinued • Downsize of underwear and baby buggy parasol activities in the UK • Arrangements made to dispose of premises in Skelmersdale • Moving into production of Crude Jatropha Oil in Brazil for the Biodiesel industry • Fernando Lunardini appointed Group Chief Executive Chairman, Stanley Wootliff, commenting on the results, said: "The year ended 28th February 2007 has been one of fundamental reassessment andrecognition of the need for strategic change. We have downsized our underwearbusiness and baby buggy parasol operations due to margin pressures and reducedsales volumes. As a result of lower than expected sales of our garden furniturewe have also now withdrawn from that activity completely. These decisions havebeen extremely difficult and as a consequence have incurred considerable costshowever doing nothing would have led to terminal decline. Following on from the above decisions, your Board has decided to reposition theCompany into the rapidly expanding Biodiesel market and to establish plantationsin Brazil to produce crude Biodiesel oil from Jatropha Trees. To lead the Groupin this development Fernando Lunardini was appointed to the Caldwell Board asGroup Chief Executive on 22nd June 2007. The Board believes that this newstrategy will deliver value for shareholders in the coming years". For further information, please contact:Stanley Wootliff, Executive ChairmanGraham Haselden, Finance Director. Tel: 0113 235 0632 CHAIRMAN'S STATEMENT BUSINESS PERFORMANCE In the last financial year, the Group has undertaken a strategic review of allits existing activities and as a consequence initiated a project to investigatethe feasibility of moving into the production of Biodiesel feed-stock in Brazilfor sale and distribution in Europe and USA (the "Biodiesel Project"). The Group loss on ordinary activities, before exceptional items, and beforetaxation, from its existing businesses for the year ended 28th February 2007 was£158,135 (2006: £525,668). Exceptional items amounting to £799,930 were related to the write down ofintellectual property, fixed assets and stocks associated with the Group'sexisting activities in particular the NinaSun garden furniture. After providing for tax on overseas profits, a retained loss of £1,118,242 hasbeen transferred to reserves. OPERATIONAL REVIEW The year ended 28th February 2007 has been one of fundamental reassessment ofthe Group's activities and recognition of the need for strategic change. As announced on 2nd February 2007, the Board has reviewed all current activitiesand as a result of ongoing margin pressure and reduced sales volumes in itsunderwear business and lower than expected uptake of its "NinaSun" gardenfurniture range, the Group has been left with no alternative but to discontinueits activities in relation to garden furniture and seek out an alternativeactivity in order to reposition the Group away from its traditional, matureunderwear businesses. This decision has been extremely difficult and incurred considerable costs,which are reflected in the accounts under review. However the Board considersthat, the inevitable consequence of doing nothing would have been terminaldecline. NinaSun Garden Furniture On 2nd February 2007, we announced that we were reviewing our NinaSun businessand considering a number of options. Although the product was initially wellreceived, the business remained too small to be economic and your Board took theview that the marketing spend necessary to achieve a commercially viable levelof sales would not produce a satisfactory return on the Group's financialresources. A number of possible options were considered, including the option offranchising, none of which proved to be feasible. It was therefore decided todiscontinue the activity. Underwear Our German business continues to trade profitably whilst continuing to besubject to ongoing margin and turnover pressures. In the UK, the volume of third party importing handled by the Group is expectedto continue to decline and the Company intends to downsize its overheads tolevels more appropriate to the reduced volumes of business. Baby Buggy Parasols Our baby buggy parasol business, "NinaClip", continues to receive a reducedvolume of orders. This is due primarily to a change in the design of babybuggies, many of which now incorporate integral hoods, removing the requirementfor a separate parasol. We continue to supply this market although an ongoingreduction in demand is expected and the operation is being scaled downaccordingly. PROPERTY In recognition of the scaling down of the existing UK businesses, the Company'spremises at Skelmersdale have been put onto the market for sale. We havereceived serious interest and hope to have exchanged contracts for the sale ofthe building within the next few months. BIODIESEL PROJECT In December 2006, as a result of the Group's strategic review your Board took adecision to investigate the feasibility of Caldwell producing Biodieselfeedstock Crude Jatropha Oil ("CJO") from Jatropha trees grown in Brazil. The Group's feasibility study into the Biodiesel market confirmed the marketopportunity for the production of CJO for the esterification of Biodiesel. The next stage entailed more detailed project evaluation including identifying aproject leader, a local management team, and investigating land availability andlocal infrastructure and resources. In January 2007, we carried out a small scale trial in Brazil planting andgerminating seeds for 1,000 Jatropha trees. The success of this trial hasconfirmed that the conditions available are sufficiently fertile for the Companyto be able to grow Jatropha trees directly from planted seeds rather thannursery grown saplings. This could afford us significant cost savings. The Board believes that Biodiesel is a rapidly expanding market whose growthwill continue to be driven by geo-political concerns and legislation aimed atprotecting the environment and is a market where demand is running ahead ofsupply. MANAGEMENT The focus of the Group's activities on the Biodiesel Project required theintroduction of appropriate management to the Board. Accordingly, in order tolead the Group in its development as a leading producer of CJO, FernandoLunardini (38) was appointed to the Caldwell board as Group Chief Executive on22nd June 2007. Fernando Lunardini is a Brazilian National based in Sao Paulo.Until May 2006 he was an Associate Partner at McKinsey & Co., for the previouseight years, and prior to that he was with Anderson Consulting and Cap Gemini.He is a non-executive director of Panazon Ambiental Ltd, a water treatmentequipment company in Brazil. He has a BSc in engineering and an MBA from INSEADand extensive experience of eco-related business development projects in Brazil.Fernando is well qualified to lead the Group in its new endeavours in theBiodiesel industry. CURRENT TRADING All the Group's existing businesses are trading satisfactorily within thecontext of the current, scaled-down business plan. The UK underwear and babybuggy businesses are being relocated to smaller premises and should be installedby the end of July. Current trading in Germany is steady. OUTLOOK The repositioning of the Group's traditional businesses is proceeding accordingto plan. The Biodiesel Project in Brazil has been initiated and funded to datefrom Caldwell's existing resources. The next stage of the Biodiesel Project willrequire more substantial funding and proposals will be put to shareholders for aplacing to provide the necessary equity capital as soon as practicable. CHANGE OF NAME The Board believes that it will be appropriate to change the Company name toVIRIDAS to reflect the Company's new activities in the green energy industry. Aspecial resolution to change the name will be put to shareholders at the AnnualGeneral Meeting on July 27th 2007. SUMMARY In the year ended 28 February 2007, we have taken some difficult decisions.Practical steps have been taken to start to reposition the Company into anexpanding area of the global economy and your Board believes that the newstrategy will deliver value for shareholders in the coming years. On a personal note, I would like to thank all my colleagues at Caldwell fortheir continued efforts and enthusiasm in what has been a difficult year.Without their help and support these achievements would not have been possible. CALDWELL INVESTMENTS P.L.C. CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 28 FEBRUARY 2007 Year ended 28 February Year ended 2007 28 February Before 2007 Year ended Year ended exceptional Exceptional 28 February 28 February items Items 2007 2006 £ £ £ £Turnover - continuing operations 6,247,478 - 6,247,478 6,418,670Cost of sales (5,161,297) (105,911) (5,267,208) (5,355,099) -------------- -------------- -------------- --------------Gross profit 1,086,181 (105,911) 980,270 1,063,571Distribution costs (139,969) - (139,969) (155,353)Administration expenses (1,104,347) (694,019) (1,798,366) (1,437,105)Other operating income - - - 3,219 -------------- -------------- -------------- --------------Operating loss - continuing operations (158,135) (799,930) (958,065) (525,668) Net interest payable (71,342) (64,126) -------------- --------------Loss on ordinary activities before taxation (1,029,407) (589,794)Tax on profit on ordinary activities (88,835) (57,412) -------------- --------------Loss for the financial year (1,118,242) (647,206) ======== ========Loss per shareBasic (5.62p) (3.40p) -------------- --------------Diluted (5.62p) (3.40p) ======== ======== CALDWELL INVESTMENTS P.L.C. BALANCE SHEETSAT 28 FEBRUARY 2007 GROUP COMPANY 2007 2006 2007 2006 £ £ £ £Fixed assetsIntangible assets 166,556 506,756 - 241,179Tangible assets 559,114 799,096 441,481 364,452Investments - - 837,906 2,382,906 -------------- -------------- -------------- -------------- 725,670 1,305,852 1,279,387 2,988,537Current assetsStocks 1,008,416 1,554,300 - -Debtors falling due within 1 year 477,088 630,912 793,132 619,916Cash at bank and in hand 689,118 917,673 444,857 607,779 -------------- ------------ ------------ ------------ 2,174,622 3,102,885 1,237,989 1,227,695 Creditors: amounts falling due within one year (1,350,779) (1,802,164) (100,338) (114,148) -------------- -------------- -------------- --------------Net current assets 823,843 1,300,721 1,137,651 1,113,547 -------------- -------------- -------------- --------------Total assets less current liabilities 1,549,513 2,606,573 2,417,038 4,102,084 Creditors: amounts falling due after more than one year (296,933) (314,043) (296,933) (314,043) Net assets 1,252,580 2,292,530 2,120,105 3,788,041 -------------- -------------- -------------- --------------Capital and reservesCalled up share capital 1,991,196 1,991,196 1,991,196 1,991,196Share premium account 1,906,229 1,906,229 1,906,229 1,906,229Capital redemption reserve 27,000 27,000 27,000 27,000Revaluation reserve 118,000 27,000 118,000 27,000Profit and loss account (2,789,845) (1,658,895) (1,922,320) (163,384) -------------- -------------- -------------- --------------Shareholders' funds 1,252,580 2,292,530 2,120,105 3,788,041 -------------- -------------- -------------- -------------- CALDWELL INVESTMENTS P.L.C. CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2007 Year ended Year ended 28 February 28 February 2007 2006 £ £Net cash inflow/(outflow) from operating activities 285,116 (605,141) Returns on investments and servicing of financeInterest received - 1,920Interest paid (69,834) (63,566)Finance lease interest paid (1,508) (2,480) -------------- --------------Net cash outflow from returns on investments and servicing of finance (71,342) (64,126) -------------- --------------TaxationTax paid (47,853) (50,542) -------------- -------------- Capital expenditure and financial investmentPurchase of intangible fixed assets (15,994) (57,735)Purchase of tangible fixed assets (5,855) (72,657)Receipt from sale of fixed assets - 2,151 -------------- --------------Net cash outflow from capital expenditure (21,849) (128,241) -------------- --------------Net cash inflow/(outflow) before financing 144,072 (848,050) FinancingIssue of shares - 574,864Share issuing expenses - (61,488)Repayment of bank loans (25,113) (24,437)Capital element of finance lease payments (9,852) (16,656) -------------- --------------Net cash (outflow)/inflow from financing (34,965) 472,283 -------------- --------------Increase/(decrease) in cash in the year 109,107 (375,767) -------------- -------------- BASIS OF PREPARATION This preliminary statement of annual results which covers the twelve months to28 February 2007 has been agreed by the Group's auditors and is consistent withthe full financial statements. The abridged preliminary Group accounts for the year ended 28 February 2007 arenot statutory accounts and have been extracted from the full statutory accountsfor the year ended 28 February 2007. The full statutory accounts for the year onwhich the auditor's report is unqualified will be delivered to the Registrar ofCompanies in due course. The comparative figures for the twelve months to 28 February 2006 are abridgedfrom the accounts for that year and do not constitute full accounts within themeaning of Section 240 of the Companies Act 1985 (as amended). Statutoryaccounts for that year on which the auditors gave an unqualified opinion havebeen delivered to the Registrar of Companies. LOSS PER SHARE The calculation of basic loss per share is based on losses attributable toordinary shareholders divided by the weighted average number of shares in issueduring the period. The calculation of diluted earnings per share is based onthe basic loss per share adjusted to allow for the assumed conversion of alldilutive options. ANNUAL REPORT The annual report will be mailed to shareholders on or around 5th July 2007.Copies will be available after that date from: The Secretary, CaldwellInvestments P.L.C., 647 Roundhay Road, Leeds, West Yorkshire LS8 4BA. ANNUAL GENERAL MEETING The Annual General Meeting will be held at Centurion House, 37 Jewry Street,London. EC3N 2ER on Friday 27th July 2007 at 10.00 a.m. This information is provided by RNS The company news service from the London Stock Exchange